Serbia, Romania, and Bulgaria CNG (Compressed Natural Gas) Fuel Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2035

CNG (Compressed Natural Gas) Fuel Market Analysis

Serbia, Romania, and Bulgaria CNG (compressed natural gas) fuel market government policies and incentives boosting the CNG adoption by supporting cleaner energy solutions and encouraging its use as an alternative fuel. Technological advancements in Serbia, Romania, and Bulgaria CNG (compressed natural gas) fuel market enhances the performance and efficiency, making them more competitive and driving further market adoption. Growing environmental awareness is pushing the adoption of sustainable practices and eco-friendly materials in both markets. Thereby driving market growth globally.

CNG (Compressed Natural Gas) Fuel Market Size

Serbia, Romania, and Bulgaria CNG (compressed natural gas) fuel market size was valued at USD 563.98 million in 2023 and is projected to reach USD 749.83 million by 2035, growing with a CAGR of 2.4% during the forecast period of 2024 to 2035. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.

CNG (Compressed Natural Gas) Fuel Market Trends

“Increasing stringent environmental policies and emission reduction targets in Serbia, Romania, and Bulgaria support the adoption of CNG”

In Serbia, Romania, and Bulgaria, strict environmental regulations and emission reduction targets are increasing the adoption of compressed natural gas as a cleaner fuel alternative to traditional options like coal, oil, propane, etc. Serbia is aligning with European Union standards by implementing policies aimed at reducing air pollution and greenhouse gas emissions. The government is supporting this shift by offering incentives for CNG vehicles and investing in the expansion of refueling infrastructure.

For Examples Romania has taken a proactive approach to incorporating CNG into its energy and transport sectors. The country’s policies focus on reducing urban air pollution and achieving EU emission targets. Romania offers subsidies and grants for CNG vehicles, leading to greater adoption, especially in public transportation and fleet operations. The growth of the CNG refueling network, supported by government initiatives, is further accelerating this transition.

Report Scope and Market Segmentation       

CNG (Compressed Natural Gas) Fuel Market Definition

The CNG fuel market in Serbia, Romania, and Bulgaria covers the entire lifecycle of compressed natural gas as a transportation fuel, from production and distribution to consumption. It involves building infrastructure such as refueling stations, advancing CNG vehicle technology, and implementing regulations that support cleaner energy. The aim is to cut emissions and reduce reliance on traditional fuels, while exploring the unique economic and environmental advantages for each country.

CNG (Compressed Natural Gas) Fuel Market Dynamics

Drivers

• Increasing stringent environmental policies and emission reduction targets in Serbia, Romania, and Bulgaria support the adoption of CNG

In Serbia, Romania, and Bulgaria, strict environmental regulations and emission reduction targets are increasing the adoption of compressed natural gas as a cleaner fuel alternative to traditional options like coal, oil, propane, etc. Serbia is aligning with European Union standards by implementing policies aimed at reducing air pollution and greenhouse gas emissions. The government is supporting this shift by offering incentives for CNG vehicles and investing in the expansion of refueling infrastructure. Romania has taken a proactive approach to incorporating CNG into its energy and transport sectors. The country’s policies focus on reducing urban air pollution and achieving EU emission targets. Romania offers subsidies and grants for CNG vehicles, leading to greater adoption, especially in public transportation and fleet operations. The growth of the CNG refueling network, supported by government initiatives, is further accelerating this transition.

For instance,

• In 2021, according to the report of UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE, Bulgaria’s coal-heavy power mix is limiting BEV adoption, but the existing NGV infrastructure offers potential. To advance NGV use, Bulgaria is expanding CNG/LNG refueling stations and supporting facilities, assessing demand, and evaluating investments, socio-economic, and environmental impacts

Rising economic benefits of using CNG

Compressed natural gas holds significant economic advantages, positioning it as a compelling alternative to traditional fuels like gasoline and diesel. A key benefit of CNG is its cost-effectiveness; it is generally cheaper than gasoline and diesel, resulting in lower fuel costs for consumers and businesses alike. This is especially advantageous for commercial vehicle fleets, where reduced fuel expenses can translate into substantial financial savings. CNG vehicles often incur lower maintenance costs due to their cleaner combustion, which reduces engine wear and the need for frequent repairs and oil changes. This leads to longer vehicle lifespans and additional savings. Another economic benefit of CNG is its price stability compared to the more volatile prices of oil-based fuels, offering more predictable and manageable fuel costs.

For instance,

• According to an article published by Pacific Gas and Electric Company, natural gas is a clean-burning fuel that quickly dissipates if leaked, avoiding water contamination and producing fewer greenhouse gases, helping to reduce global warming compared to other fuels

Opportunities

• Substantial potential in converting existing fleets of public and private transportation to CNG

Converting existing fleets of public and private transportation to Compressed Natural Gas (CNG) offers significant economic, environmental, and operational benefits. Economically, CNG is a cost-effective alternative to gasoline and diesel, leading to lower fuel costs and substantial savings for fleet operators. This is especially advantageous for large fleets, such as those used in public transit and logistics, where fuel expenses constitute a significant portion of operating budgets. CNG vehicles often incur lower maintenance costs due to their cleaner combustion, which reduces engine wear and the frequency of repairs. This results in longer vehicle lifespans and increased savings. Environmentally, CNG is a cleaner fuel that significantly reduces emissions of Nitrogen Oxides (NOx), particulate matter, and Carbon Dioxide (CO2) compared to conventional fuels. This reduction in pollutants helps improve air quality, comply with stringent emission regulations, and benefit public health.

• Collaborative efforts between Serbia, Romania, and Bulgaria in developing cross-border CNG infrastructure

The collaborative efforts of Serbia, Romania, and Bulgaria in developing cross-border Compressed Natural Gas (CNG) infrastructure represent a crucial advancement in enhancing regional energy security and promoting sustainable transportation. Recognizing the mutual benefits of a connected CNG network, these countries are working together to create an extensive and integrated refueling infrastructure that spans their borders. A central aspect of this collaboration is the development of cross-border refueling stations designed to provide uninterrupted access to CNG for vehicles traveling between these nations. By establishing a network of strategically placed refueling stations along key transportation routes, Serbia, Romania, and Bulgaria aim to facilitate the widespread adoption of CNG vehicles and streamline the movement of commercial and public transport fleets across borders.

For instance,

• According to a blog published by Vignette Bulgariia, Serbia and Bulgaria share a historical relationship shaped by periods of conflict and cooperation. Since the Yugoslav breakup in the 1990s, they have established their current internationally recognized border, with bilateral regulations for goods, people, and mutual security, including the requirement of a Bulgarian Vignette

Restraints/Challenges

• Increasing competition with alternative fuels

The rise of alternative fuels such as Electric Vehicles (EVs), hydrogen, and biofuels poses a direct competition to CNG. Electric vehicles, in particular, are gaining traction due to advances in battery technology and growing investments in charging infrastructure. Hydrogen fuel cells are also being explored for their potential to provide zero-emission transport solutions. These alternatives often benefit from strong governmental support and subsidies aimed at reducing carbon emissions. The development and expansion of refueling infrastructure for alternatives like electric vehicles and hydrogen may overshadow investments in CNG stations. Governments and private investors are increasingly focusing on these new technologies, which could divert resources and attention away from building a robust CNG network.

For instances

• In April 2024, according to news published by Green Forum, Romania is experiencing a shortage of charging stations, but the rising adoption of Electric Vehicles (EVs) underscores the increasing demand. To facilitate the transition to electric cars and support sustainable transportation, Romania needs to enhance its infrastructure and implement favorable regulations. Mihai Drăghici, partner at EY Romania, highlighted in an interview with Green that Romania anticipates an annual growth rate of 20-25% for EV sales, with the market share expected to reach nearly 30% by 2024 and possibly exceed 50% by 2027

Strict safety and regulatory standards heighten complexity and costs

Strict safety and regulatory standards significantly heighten the complexity and costs associated with various industries, presenting notable challenges. These standards, while crucial for ensuring the safety, reliability, and environmental sustainability of products and processes, introduce layers of complexity in compliance and implementation. Meeting rigorous safety and regulatory requirements often demands extensive documentation, testing, and certification processes. For manufacturers, this means investing in comprehensive testing facilities and procedures to ensure their products meet the required standards. This not only increases operational costs but also extends development timelines, which can delay market entry and impact competitive positioning.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Climate Change Scenario

The CNG (compressed natural gas) fuel market is often positioned as a cleaner alternative to traditional fossil fuels like gasoline and diesel. However, environmental concerns persist, particularly regarding methane leakage during extraction, transportation, and use, which can offset the carbon reduction benefits of CNG. Methane is a potent greenhouse gas with a global warming potential significantly higher than CO2, making its management critical for CNG's environmental viability. Additionally, while CNG burns cleaner than other fossil fuels, it is still a non-renewable resource, and its long-term role in a decarbonized economy is debated.

Regulatory Framework Content

Regulations play a crucial role in the Serbia, Romania, and Bulgaria CNG (compressed natural gas) fuel market, ensuring product quality, safety, and environmental compliance throughout the manufacturing process.

• Below is the table that shows various regulations that govern the market:

Ministry of Mining and Energy Republic of Serbia): The Ministry of Mining and Energy has introduced a new regulatory framework for the gas sector. It mandates that the Minister issue permissions for various gas infrastructure projects and establishes new entities for transportation and distribution to enhance market functionality.

United Nation Regulation: United Nations Regulation No. 110 standardizes the approval of components and vehicles using compressed natural gas (CNG) and liquefied natural gas (LNG) for propulsion, ensuring uniform installation and safety standards.

Bulgarian Council of Ministers: Bulgaria's national policy for alternative fuels aims to align with EU standards by developing CNG and LNG infrastructure. It includes reduced excise duties, special parking, and procurement bonuses. The plan phases infrastructure expansion from transport corridors to regional networks by 2030.

Production Cost Scenario

The average production cost for manufacturers is not constant, it depends or variable to various factors. As per our analysis the average production of CNG (Compressed Natural Gas) Fuel is 458,708.69 Tons in the year 2023, and it is expected to reach 460,447.76 Tons in 2024. The average consumption is 421,507.42 Tons in the year 2023 and it is expected to reach 427,111.35 Tons in 2024.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

CNG (Compressed Natural Gas) Fuel Market Scope

The market is segmented on the basis of products, source, kits, fuel chamber, vehicle type, CNG fuel stations offering, CNG fuel stations entity, and end use. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Products

• CNG (Methane-Natural Gas Stored Under High Pressure and Used as Transportation Fuel)
• BioCNG (Biomethane)

Source

• Associated Gas
• Non-Associated Gas

Kits

• Sequential
• Venturi

Fuel Chamber

• Dual-Fuelled Vehicles
• Dedicated (CNG-Fuelled) Vehicles

Vehicle Type

• Private
• Fleet
  • Taxi/bus
  • Police
  • Delivery
  • Others

CNG Fuel Stations Offering

• Monofuel Refuelling Stations (Offering Solely CNG)
• Multifuel Refuelling Stations (Offering Conventional Fuels and CNG)

CNG Fuel Stations Entity

• Public Refuelling Stations (Free Access at the Station)
• Private/Internal

End Use

• Light Motor Vehicles
  • Cars
    • SUVs
    • MUVs
    • Hatchbacks
    • Sedans
    • Coupes
    • Convertibles
    • Others
  • Jeep
  • Minivan
  • Others

Medium Motor Vehicles

• Bus
• Tempo
• Mini-Truck

Heavy Motor Vehicles

• Truck
• Trailers
• Containers
• Multi-Axle Bus
• Others

CNG (Compressed Natural Gas) Fuel Market Regional Analysis

The market is analyzed and market size insights and trends are provided by country, products, source, kits, fuel chamber, vehicle type, CNG fuel stations offering, CNG fuel stations entity, and end use as referenced above.

The countries covered in the market are Bulgaria, Serbia, and Romania.

Romania is expected to dominate due to its environmental benefits and cost-efficiency, with growing recognition of its lower emissions and expenses.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of regional brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

CNG (Compressed Natural Gas) Fuel Market Share

The market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

CNG (Compressed Natural Gas) Fuel Market Leaders Operating in the Market Are:

• NIS (Germany)
• KryoGas (Europe)
• Engie SA (France)
• Total Energies SE (France)
• Chevron Corporation (U.S.)
• Shell PLC (U.K.)

Latest Developments in CNG (Compressed Natural Gas) Fuel Market

• In November 2023, according to an article by Djordje Jajcanin, Serbia is set to complete its section of the Serbia-Bulgaria natural gas interconnection by the end of November, according to Energy Minister Dubravka Djedovic Handanovic. The pipeline, which will transport 1.8 billion cubic meters of natural gas annually, is nearing operational status. Serbia also recently signed a deal with Azerbaijan to import 400 million cubic meters of gas, diversifying its energy sources
• In February, Shell PLC completed the acquisition of Nature Energy, a leading producer of Renewable Natural Gas (RNG). This strategic move marks a major expansion of Shell’s capabilities in the low-carbon fuels sector, reinforcing its commitment to accelerating the energy transition. Nature Energy specializes in the production of biogas through anaerobic digestion, converting organic waste into Renewable Natural Gas (RNG). This acquisition enhances Shell's position in the RNG market, providing a sustainable alternative to fossil fuels that can be used in transportation, industry, and heating

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